Abstract:
This study aims to explain the (explanatory), namely a study to examine and explain the influence of exogenous variabels on endogenous variabels (causal), namely the influence of local government capital and private investment towards the social welfare in West Kalimantan Province through the path of economic growth and employment. This study is characterized by descriptive as well as quantitative research, namely research that aims to giving picture or a characteristic of a particular phenomenon by using the regression equation model Ordinary Least Square (OLS), where relationships between variables in this study suggest a system of simultaneous equations or structural. The secondary data as used in the research such as panel data (the data aliance of time series and cross section) from 12 regency/city of West Kalimantan province during the period 2005- 2009. The research finding indicate that (1) variabel local government capital expenditure has no significant positive effect on economic growth and private investment variables had a significant negative impact on economic growth, (2) variable local government capital expenditures have significant positive effects on employment and private investment variables have a positive effect on employment is not significant, (3) the influence of local government capital expenditure and private investment through economic growth and employment, second variables of economic growth and employment have a significant effect on the welfare of society, but the slope of economic growth shows a negative value.
